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July 26, 2022

Julius Baer H1 profits slump amid market swings

Swiss wealth manager Julius Baer has reported a fall in profit in the first half of 2022, which it described as “one of the worst six-month periods for capital markets in decades”.

The bank’s net income dropped 26% to $468m (CHF450m). Net profit attributable to shareholders also dropped by 26% to CHF451m or earnings per share by 24% to CHF 2.15.

Operating income was down 6.0% to CHF 1.97bn in the six months to June 2022.

The assets under management (AUM) also declined by 11% to CHF428bn in the first six months of the year.

Adjusted pre-tax profit fell 27% to CHF542m and the adjusted pre-tax margin dropped by 9 to 24 basis points.

Julius Baer said it registered net new money of CHF1.5bn from the end of April this year, partly offsetting the CHF2.7bn net outflows recorded in the first four months of 2022.

The group recorded CHF1.1bn of net outflows in the first six months of 2022. The adjusted return on CET1 capital (RoCET1) declined to 30% from 38% in the first half of 2021.

Julius Baer Group CEO Philipp Rickenbacher said: “We look back at a historical six-month period of unprecedented geopolitical events that had a deep impact on asset valuations and client sentiment.

“We remain focused on achieving our targets for the strategic cycle ending in 2022, accelerating cost discipline across the Group, doubling down on efforts to create value for clients and opportunities to hire front-office talent. As such, we are already establishing the prerequisites to deliver on the longer-term growth commitments outlined at our strategy update earlier this year.”

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